StellaSwap Launches AMM Trading on Major Protocols Partner Polkadot

StellaSwap, the leading decentralized exchange (DEX) on Polkadot, has announced the launch of its Correlated Asset Automated Market Maker (AMM) to facilitate low-slip trading of stablecoins and multiple variations of the same assets. This groundbreaking innovation will set the framework for a hybrid AMM model where users will be able to efficiently trade across multiple AMMs from a unified user interface.

why it matters

StellaSwap’s Correlated-Asset MA implements Curve’s Stable Exchange Invariant Model, resulting in extremely low slippage for same-value assets such as stablecoins. The standard AMM, which is used by the majority of DEXs, uses Uniswap’s constant product invariant, which is great for priming liquidity but not great for correlated assets due to its higher slippage. Additionally, a Correlated Asset AMM addresses the following issues present on Polkadot and Moonbeam, the parachain on which StellaSwap is built:

  • Liquidity fragmentation resulting from different variations of the same coin due to the presence of multiple bridges
  • Unproductive farms resulting in unnecessary emissions.

With a stable AMM, liquidity fragmentation is mitigated by creating pools of assets that include different types of the same coin. For example, consider USD Coin (USDC). Having anyUSDC), madUSDC, and celerUSDC – similar to a pool of three or four pools of the same asset – in the same stable pool allows users to trade between variations of USDC and aggregate overall liquidity. Having more than two assets in the same pool also reduces agricultural issuance inefficiency while concentrating liquidity in core pools.

Atticus, co-founder of StellaSwap, said, “Our correlated asset AMM serves to provide the best user experience to users under a hybrid DEX model. Not only will this result in reduced slippage and minimal fees, but it will also fundamentally solve liquidity fragmentation in the Polkadot ecosystem while maximizing the value for token holders, as issuance distributions are optimized. The support we have received from our partners has been tremendous.

Strong support from ecosystem partners and Layer 1 networks

StellaSwap’s Correlated Asset MA will be supported by various partners with leading bridges such as Nomad, Multichain and Axelar Network. Ecosystem partners such as Moonbeam, Terra and Frax will support the launch of stablepools.

Chronology of the launch of the MA of correlated assets

The launch of the Correlated Asset MA will follow a sequential release of pools that combines the efforts of StellaSwap and its partners. The timeline is:

  • First phase, early next week: the launch of a risk-free Ether (ETH) farm in anyETH-madETH pair with Multichain and Nomad
  • Second phase, within three weeks: the launch of the base pool to four top-tier stablecoin pools to be incentivized by major protocols
  • The third phase, within six weeks: subsequent meta-pools of Polkadot assets and other Layer 1 (L1) assets.

About StellaSwap

StellaSwap is the first and leading Moonbeam DEX that offers an integrated gateway to the world of decentralized finance. Users can trade, earn, produce farms, link assets, explore new projects, and engage in non-fungible token exchanges, all from one unified platform.

StellaSwap’s products are structured to facilitate decentralized governance of STELLA token holders.

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